Yep, that's basically what I'm trying to to detect JJ; which layers overlap the blue area would be the ideal result. Which objects overlap the blue layer's bounds is an ok method, but not 100% accurate (as demonstrated by your example). The bounds method does narrow down what layers I need to check it against, but it still returns 2 layers I need to then take extra time to check against for the actual overlap, which wouldn't be necessary if we can get the check more detailed.
Since a more detailed way of getting the overlaps is still being looked into, I'm thinking of using EnsilZah's and/or c.pfaffenbichler's suggestions in tandem with some code they helped me with previously (here: http://forums.adobe.com/message/6256651#6256651 ) to get the actual overlaps by process of elimination on a narrowed return result using current suggestions; at least until a better/more efficient solution comes along. I am still open to other ideas, on this topic, though.